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bmeyer1960-2020
March 3, 2025
Question

Why do we have a penalty of $47 for a distribution that was taken correctly?

  • March 3, 2025
  • 1 reply
  • 0 views
We received a distribution of $465 from an IRA. Why is a penalty being added?

    1 reply

    CatinaT1
    CatinaT1
    March 3, 2025

    If you make a withdraw from your Traditional IRA prior to age 59 1/2 you generally receive a 10% early withdrawal penalty.  There are exceptions to this penalty.  I am assuming you are under age 59 1/2 and is the reason for your question.

     

    Some of the exceptions to the penalty include:

    • Total and permanent disability
    • Qualified education expenses
    • Qualified First Time Home buyers

    To see the full list of exemptions, click here.

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